Trade Unions Act 1926

What is the need of

Trade Unions?
1. SHORT TITLE, EXTENT AND COMMENCEMENT.-

(1) This Act may be called the Trade Unions Act, 1926.
(2) It extends to the whole of India
(3) It shall come into force on such date6 as the Central Government may,
by notification in the Official Gazette, appoint
2. DEFINITIONS.

"executive' , means the body, by whatever name called, to which the

management of the affairs of a Trade Union is entrusted;

“office-bearer" in the case of a Trade Union, includes any member of

the executive thereof, but does not include an auditor;

"prescribed" means prescribed by regulations made under this Act;

"registered office" means that office of a Trade Union which is registered

under this Act as the head office thereof;

"registered Trade Union" means a Trade Union registered under this Act;
"Registrar" means-

(i) a Registrar of Trade Unions appointed by the appropriate Government

under section 3, and includes any Additional or Deputy Registrar of Trade
Unions, and

(ii) in relation to any Trade Union, the Registrar appointed for the State in
which the head or registered office, as the case may be, of the Trade Union is
situated
FORMS OF TRADE UNIONS
There are three forms of trade unions: -
Classical: A trade union’s main
objective is to collectively safeguard the
interests of its members in a given
socio-economic-political system. Trade
unions are the realistic expressions of
the needs, aspirations and wishes of the
working class.
Neo-classical: It goes beyond the
classical objectives and attempts to
improve other wider issues like taxreliefs, raising saving rates, etc.
Revolutionary change in the system:
Establishing the rule of working class
even through revolutionary means such as violence, use of force, etc.
FUNCTIONS OF TRADE UNIONS
Militant or Protective or Intra-mutual functions: These functions include
defending the
workers’ interests, i.e., hike in wages, providing more benefits, job security,
etc., through the
means of collective bargaining and direct action such as strikes, gheraos,
etc.
Fraternal or extramural functions: These functions include ensuring the
financial and nonfinancial assistance available to workers during the
periods of strikes and lock-outs, extension
of medical facilities during slackness and casualties, provision of education,
recreation,
recreational and housing facilities, provision of social and religious
benefits, etc.
Political functions: These functions include affiliating the
union to a political party, assisting
the political party in enrolling members, amassing
donations, seeking the help of political
parties during the periods of strikes and lock-outs.
Social functions: These functions include getting involved
in social service activities,
discharging social responsibilities through various sections
of the society like educating the
customers etc
 OBJECTIVES OF TRADE UNIONS
Wages and Salaries: The subject which shows the major attention of the trade
unions is wages and salaries. Of course, this item may be related to policy matters.
However, differences may arise in the process of their implementation. In the case
of unorganised sector, the trade union plays a instrumental role in bargaining the
pay scales.

Working conditions: Trade unions with a view to protect the health of the
workers demand the management to provide all the basic amenities such as
lighting and ventilation, sanitation, rest rooms, safety equipment while
discharging hazardous duties, drinking water,
refreshment, minimum working hours, leave and rest, holidays with pay, job
satisfaction, social security benefits and other welfare measures.
Discipline: Trade unions not only conduct negotiations in
respect of the items with which their working conditions
may be improved but also safeguard the workers from the
controls of management whenever workers become the
victims of management’s unilateral acts and
disciplinary policies.
Personnel policies:
Welfare
Employee-employer relations
Negotiating machinery:
Safeguarding organisational
 CLASSIFICATION OF TRADE UNIONS
Classification based on ideology
Revolutionary Unions: They believe in destruction of existing
social/economic order and creation of a new one. They want a change in
power and Authority and use of force - Left Unions
Reformist or Welfare Unions: These work for changes and reforms
within the existing socio-political framework of the society like a
EuropeanModel.
Uplift Unions: They believe that scope of extensive reforms well
beyond the area of working condition, i.e., change in taxation system,
elimination of poverty, etc.
Classification Based on Trade
Craft Unions:
General Unions
Blue-Collar/White Collar Unions:
Industrial Unions:
 REGISTRATION OF TRADE UNIONS
MODE OF REGISTRATION
(1) Any seven or more members of a Trade Union may, by subscribing their
names to the rules of the Trade Union and by otherwise complying with the
provisions of this Act with respect to registration, apply for registration of the
Trade Union under this Act.

(2) Where an application has been made under sub-section (1) for the
registration of a Trade Union, such application shall not be deemed to have
become invalid merely by reason of the fact that, at any time after the date of the
application, but before the registration of the Trade Union, some of the
applicants, but not exceeding half of the total number of persons who made
the application, have ceased to be members of the Trade Union or have given
notice in writing to the Registrar dissociating themselves from the application.]
APPLICATION FOR REGISTRATION .-

(1) Every application for registration of a Trade Union shall be made to the Registrar
and shall be accompanied by a copy of the rules of the Trade Union and a
statement of the following particulars, namely:-

(a) the names, occupations and address of the members making application;
(b) the name of the Trade Union and the address of its head office; and
(c) the titles, names, ages, addresses and occupations of the 3[office-bearers] of
the Trade Union.
(2) Where a Trade Union has been in existence for more than one year before the
making of an application for its registration, there shall be delivered to the Registrar,
together with the application, a general statement of the assets and liabilities of the
Trade Union prepared in such form and containing such particulars as may be
prescribed.
PROVISIONS TO BE CONTAINED IN THE RULES OF A TRADE UNION .-

A Trade Union shall not be entitled to registration under this Act, unless the
executive thereof is constituted in accordance with the provisions of this Act, and
the rules thereof provide for the following matters, namely:-

(a) the name of the Trade Union;

(b) the whole of the objects for which the Trade Union has been established;
(c) the whole of the purposes for which the general funds of the Trade Union shall
be applicable, all of which purposes shall be purposes to which such funds are
lawfully applicable under this Act;
(d) the maintenance of a list of the members of the Trade Union and adequate facilities
for the inspection thereof by the office-bearers and members of Trade Union;
(e) the payment of a subscription by members of the Trade Union which shall be not
less than twenty-five naye paise per month per member
(f ) the conditions under which any member shall be entitled to any benefit assured
by the rules and under which any fine or forfeiture may be imposed on the
members:
(g) the manner in which the rules shall be amended, varied or rescinded;
(h) the manner in which the members of the executive and the other 1[office-
bearers] of the Trade union shall be appointed and removed;
(i) the safe custody of the funds of the Trade Union, an annual audit, in such
manner as may be prescribed, of the accounts thereof, and adequate facilities for the
inspection of the account books by the 1[office-bearers] and members of the Trade
Union; and
(j) the manner in which the Trade Union may be dissolved.
POWER TO CALL FOR FURTHER PARTICULARS AND TO REQUIRE
ALTERNATIONS OF NAMES.-

(1) The Registrar may call for further information for the purpose of satisfying
himself that any application complies with the provisions of section 5, or that the
Trade Union is entitled to registration under section 6, and may refuse to register
the Trade Union until such information is supplied.

(2) If the name under which a Trade Union is proposed to be registered is identical
with that by which any other existing Trade Union has been registered or, in the
opinion of the Registrar, so nearly resembles such name as to be likely to deceive the
public or the members of either Trade Union, the Registrar shall require the persons
applying for registration to alter the name of the Trade Union stated in the
application, and shall refuse to register tile Union until such alteration has been
made.
REGISTRATION.-

The Registrar, on being satisfied that the Trade Union has complied
with all the requirements of this Act in regard to registration, shall
register the Trade Union by entering in a register, to be maintained in
such form as may be prescribed the particulars relating to the Trade
Union contained in the statement accompanying the application for
registration.
CERTIFICATE OF REGISTRATION.-

The Registrar, on registering a Trade Union under

section 8, shall issue a certificate of registration in
the prescribed form which shall be conclusive evidence
that the Trade Union has been duly registered under
this Act.
 CANCELLATION OF REGISTRATION.-

A certificate of registration of a Trade Union may be withdrawn or cancelled by the

Registrar-
(a) on the application of the Trade Union to be verified in such manner as may be
prescribed;
(b) if the Registrar; is satisfied that the certificate has been obtained by fraud or
mistake or that the Trade Union has ceased to exist or has wilfully and after notice
from the Registrar contravened any provision of this Act or allowed any rule to
continue in force which is inconsistent with any such provision or has rescinded any
rule providing for any matter provision for which is required by section 6:
Provided that not less than two months previous notice in writing specifying the
ground on which it is proposed to withdraw or cancel the certificate shall be given by
the Registrar to the Trade Union before the certificate is withdrawn or cancelled
otherwise than on the application of the Trade Union.
APPEAL.-

(1) Any person aggrieved by any refusal of the Registrar to register a Trade Union or
by the withdrawal or cancellation of a certificate of registration may, within such
period as may be prescribed, appeal-

(a) where the head office of the Trade Union is situated within the limits of a
Presidency town to the High Court, or

(b) where the head office is situated in any area, to such Court, not inferior to the
Court of an additional or assistant Judge of a principal Civil Court of original
jurisdiction as the Appropriate Government may appoint in this behalf for that area.
INCORPORATION OF REGISTERED TRADE UNION.-

Every registered Trade Union shall be a body corporate by the name under
which it is registered, and shall have perpetual succession and a common seal
with power to acquire and hold both movable and immovable property and to
contract, and shall by the said name sue and be sued.
CERTAIN ACTS NOT TO APPLY TO REGISTERED TRADE UNIONS.

The following Acts namely- .

(a) The Societies Registration Act, 1860
(b) The Co-operative Societies Act, 1912
(c) The Companies Act. 1956
RIGHTS AND LIABILITIES OF
REGISTERED TRADE UNIONS
OBJECTS ON WHICH GENERAL FUNDS MAY BE
SPENT.-

The general funds of a registered Trade Union shall not be spent on any
other objects than the following, namely:-
(a) the payment of salaries, allowances and expenses to 1[office-bearers] of
the Trade Union;
(b) the payment of expenses for the administration of the Trade Union,
including audit of the accounts of the general funds of the Trade Union;
(c) the prosecution or defence of any legal proceeding to which the Trade
Union or any member thereof is a party, when such prosecution or defence
is undertaken for the purpose of securing or protecting any rights of the
Trade Union as such or any rights arising out of the relations of any
member with his employer or with a person whom the member employ;
(d) the conduct of trade disputes on behalf of the Trade Union or any
member thereof;
(e) the compensation of members for loss arising out of trade disputes;
(f) allowances to members or their dependants on account of death, old age,
sickness, accidents or unemployment of such members;
(g) the issue of, or the undertaking of liability under, policies of assurance on
the lives of members, or (under) policies insuring members against sickness,
accident or unemployment;
(h) the provision of education, social or religious benefits for members
(including the payment of the expenses of funeral or religious ceremonies for
deceased members) or for the dependants of members;
(i) the upkeep of a periodical published mainly for the purpose of discussing
questions affecting employers or workmen as such;
 CONSTITUTION OF A SEPARATE FUND
FOR POLITICAL PURPOSES.-

(1) A registered Trade Union may constitute a separate fund, from

contributions separately levied for or made to that fund, from which
payments may be made, for the promotion of the civic and political interests
of its members, in furtherance of any of the objects specified in sub-section
(2) The objects referred to in sub-section (1) are:-
(a) the payment of any expenses incurred, either directly or indirectly, by a
candidate or prospective candidate for election as a member of any legislative
body constituted under 3[***] 4[the Constitution] or of any local authority,
before, during, or after the election in connection with his candidature or
election; or
(b) the holding of any meeting or the distribution of any literature or
documents in support of any such candidate or prospective candidate;
DISQUALIFICATIONS OF OFFICE-
BEARERS OF TRADE UNIONS .-

(1) A person shall be disqualified for being chosen as, and for being
member of the executive or any other office-bearer of a registered
Trade Union if-
(i) ha has not attainted the age of eighteen years;
(ii) he has been convicted by a court in India of any offence involving
moral turpitude and sentenced to imprisonment, unless a period of
five years has elapsed since his release.
AMALGAMATION OF TRADE UNIONS .-

Any two or more registered Trade Unions may become

amalgamated together as one Trade Union with or without
dissolution or division of the funds of such Trade Unions or
either or any of them, provided that the votes of at least cine-half
of the members of each or every such Trade Union entitled to
vote are recorded, and that at least sixty per cent of the votes
recorded are in favour of the proposal.
NOTICE OF CHANGE OF NAME OR
AMALGAMATION.-

(1) Notice in writing of every change of name and of every amalgamation

signed, in the case of a change of name, by the Secretary and by seven
members of the Trade Union changing its name, and in the case of an
amalgamation, by the Secretary and by seven members of each and every
Trade Union which is a party thereto, shall be sent to the Registrar and
where the head office of the amalgamated Trade Union is situated in a
different State, to the Registrar of such State.
(2) If the proposed name is identical with that by which any other existing
Trade Union has been registered or, in the opinion of the Registrar, so
nearly resembles such name as to be likely to deceive the public or the
members of either Trade Union, the Registrar shall refuse to register the
change of name
(3) Save as provided in sub-section (2), the Registrar shall, if he is satisfied
that the provisions of this Act in respect of change of name have been
complied with, register the change of name in the register referred to in
section 8, and the change of name shall have effect from the date of such
registration.
(4) The registrar of the State in which the head office of the amalgamated
Trade Union is situated shall, if he is satisfied that the provisions of this
Act in respect of amalgamation have been complied with and that the
Trade Union formed thereby is entitled to registration under section 6,
register the Trade Union in the manner provided in section 8, and the
amalgamation shall have effect from the date of such registration.
EFFECTS OF CHANGE NAME AND OF
AMALGAMATION.

(1) The change in the name of a registered Trade Union shall not affect
any rights or obligations of the Trade Union or render detective any legal
proceeding by or against the Trade Union, and any legal proceeding
which might have been continued or commenced by or against it by its
former name may be continued or commenced by or against it by its
new name.
(2) An amalgamation of two or more registered Trade Unions shall not
prejudice any right of any of such Trade Unions or any right of a creditor
of any of them.
DISSOLUTION.-

1) When a registered Trade Union is dissolved, notice of the dissolution

signed by seven members and by the Secretary of the Trade Union
shall, within fourteen days of the dissolution be sent to the Registrar,
and shall be registered by him if he is satisfied that the dissolution
has been effected in accordance with the rules of the Trade Union,
and the dissolution shall have effect from the date of such
registration.

(2) Where the dissolution of a registered Trade Union has been

registered and the rules of the Trade Union do not provide for the
distribution of funds of the Trade Union on dissolution, the Registrar
shall divide the funds amongst the members in such manner as may be
prescribed.
AUDIT .-
(a) every payment which appears to be unauthorized by the rules of the Trade
Union or contrary to the provisions of the Act,
(b) the amount of any deficiency or loss which appears to have been incurred
by the negligence or misconduct of any person,
(c) the amount of any sum which ought to have been but is not brought to
account by any person.

The audit of the political funds of a registered Trade Union

shall be carried out alongwith the audit of the general account
of the Trade Union and by the same auditor or auditors.
 INSPECTION.-
(1) The register of Trade Unions maintained in accordance with Regulation
4 shall be open to inspection by any person on payment of a fee of annas
eight.
(2) Any documents in the possession of the Registrar received from a
registered Trade Union may be inspected by any member of that Union on
payment of a fee of annas eight for each document inspected.
(3) Documents shall be open to inspection every day on which the office of
the Registrar is open and within such hours as may be fixed for this
purpose by the Registrar.
(4) The Registrar may supply a Certified copy of any such document to a
registered Trade Union or a member thereof on payment of annas twelve
for the first two hundred words (or less) and annas six for every additional
hundred words or fractional part thereof.